STX falls over 10% as Toshiba plans to double HDD capacity

Simplywall+1 · 2 hours ago
STX falls over 10% as Toshiba plans to double HDD capacity
  • Nikkei-cited reports say Toshiba plans to double its HDD capacity for AI data centers, with a ~$380M investment in its Philippines plant.
  • Toshiba's goal is a 30% HDD share, up from just over 10%, and the plan targets capacity expansion by 2027.
  • Seagate fell 10% to 12% intraday and Western Digital fell 7% to 10% on the report, per outlets cited by Centiview.
  • Seagate's margins nearly doubled on scarce supply, and Centiview flags that a third large producer chasing the same AI data-center customers puts pricing at risk sooner than analysts expect.
  • Seagate trades at a 55.9x P/E, above peers and the global tech average, per Simply Wall St.

Quotes

“Toshiba plans to double its hard-drive capacity for AI data centers, with ~$380M for its Philippines plant, aiming for 30% share from just over 10%.”— Centiview Research

Sources